[hessmt]

Has anyone ever seen/heard of Estate Taxation questions relating to the calculation of DNI and subsequent taxation appearing on the exam? There are 2 or 3 questions relating to this topic in the Gleim study guide that I cant seem to master. With my test on Thursday, is it worth trying to cram this obscure topic into my head as long as I know that DNI is the maximum a recipient can be taxed and that the estate may take a deduction for the lesser of DNI and Distributable (Required to be distributed) Income?

If you think it is worth learning: Links or Guidance is helpful!

Thanks

[Anonymous]

Calculation of DNI is not as complex as it sounds. The main point is that it includes the income earned on the estate, but not gains attributable to corpus. The problem should tell you if it is a corpus gain or not. The deductions are basically just admin fees, not anything super hard to figure out. Good luck!

estate/trust gross income

(estate/trust deductions)

---

adjusted total income

+ tax-exempt interest

(capital gains from corpus)

---

DNI

[Author]

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